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Sustainability: Waqf and Zakat Contributions

Presentation for the International Conference on Islam, Science and

Sustainable Development: Maqasid al-Shari'ah & Humanity's Wellbeing 6-7 Oct, 2015

Ibrahim khalil

Yunus Ali

Mohammed Shaiban

Poster Content Sustainability OR sustainable development?

Sharia Definition of waqf

Sharia Definition of Zakat

Curiosity ??

Socio- economic dimensions

Waqf

Zakat

Waqf and Zakat integration in achieving sustainable development

Concluding remarks

Sustainability _ On going perspective

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Debate….. Sustainability/ Sustainable development

• The concept of sustainable development entails wide studies and creative ambiguity, which has precisely, makes it useful for bridging the gap between no-growth environmentalists and pro-growth developmentalists.

• However, the debate is still raging between the conceptual framework of sustainability and sustainable development, but there are some notable differences that make sustainability and sustainable development separate concepts. Sustainability attempts to approach issues with an environmentalist aspect whereas sustainable development attempts to approach issues with a business aspect or infrastructure aspect. Moreover, sustainability is focused mainly on reducing consumption and changing our lifestyles to save the environment.

• On the contrary, sustainable development focuses on establishing infrastructure that will effect in induce a steady incline of economic growth and social development while keeping the environment clean (Malawi, 2011).

Debate continues……….

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So what is the Islamic perspective/ objectives

i.e., (Maqasid al- Shariah)?? • Islam as a way of life…

– covers all aspects of human life

– regulates the relationships between God, Human, and Nature.

• Human is viewed as a trustee (khalifah) and a witness (shahed).

• Nature is created by God (Allah) for the benefit of humans

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Contd…

• Therefore,

• Hence human role and responsibility is to ensure that all resources, physical and human, are utilized in a reasonable, equitable, and sustainable manner. human activity is given a transcendent dimension; it becomes sacred, meaningful, and goal-centered.

• Examples:

– NO approval for the useless cutting of trees whether we can benefit from their fruits or not.

– Disapproves of wasteful use of water, even if there is no scarcity of it.

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Contd… • Encouragement of human beings from all faiths and

nations to cooperate and exchange knowledge and wisdom (Hikmah) to establish a better and prosperous life and construct the world (Emmartu al Kawn). Thus every other use of resources which results in its destruction are rejected by Islamic injunctions.

• All of these are precisely mentioned in various verses of Qur’an and the traditions .

– Based on the above :

– Islamic conceptual framework of sustainable development, is based on several factors such

• as: people, norms and values

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Waqf Islamic Endowment

• Waqf is one of the most important Islamic instruments to achieve economic and social development.

• It is an act of protecting something, by preventing it from becoming the property of a third party, or refraining from undue use and disposal of any property from which others can benefit or use its returns for any purpose as long as it exists (Manan, 2005).

• Types/conditions ….are out of scope for this paper 8

Waqf in the primary sources

Those who spend their wealth (in Allah’s Cause) by night and day, in secret and in public, they shall have their reward with their Lord. On them shall be no fear, nor shall they grieve” (Al-Quran, 3:274).

إذا مات االنسان انقطع عمله إال من ثالث؛ صدقة جارية )

(.وعلم يُنتفع به وولد صالح يدعو له

The Prophet (s) said: When a man dies his acts come to an end,

except three things, recurring charity, knowledge (by which

people benefit), and pious offspring, who pray for him.

Waqf and its role in socio-economic • waqf asset may not be sold or transformed its ownership by

any means in accordance with the opinion of the majority of scholars

• remains in the waqf domain perpetually and any new waqf will

be added to that domain, meaning that waqf assets are only

liable to increase (Mochammad & Dimas, 2011).

• socio- economic development has a great implications in

achieving sustainable development and thus reducing the

government expenditure and ease a burden from the public

treasury of the state

• Furthermore, waqf institutions has a potential role in providing kindness, social justice, promoting innovation and social development without interference of the state (Mazrul, 2012).

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Socio- economic Waqf Turkish Model

• Waqf in Turkey is not limited to the poor and needy. BUT..

- Meeting the need of wayfarers and pilgrims,

– Raising orphans,

– Providing scholarships to students, educating apprentice artisans

toward mastery,

– helping the bankrupt or those with excessive debt,

– covering marriage expenses for needy couples,

– sheltering animals, taking care of widows, hungry and the

destitute, sick and the disabled, running health care, sports and

educational programs, producing candles for mosques, taking care

of the environment,

– paving roads, enlightening streets, paying a neighborhood's taxes,

supporting retired sailors, subsidizing the cultivation of rare roses,

operating commuter ships, lending to small businesses, helping

prisoners, and providing toys to children of poor families.

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Zakat _ Socio economic contributions

• Zakat is one of the five pillars of Islam, "(Al-Quran, 9:60).

• 8 channels:

– Poor

– Destitute-

– Who are in charge

- Those whose hearts are to be reconciled /

– Free those in bondage,

– Burdened with debt

– in the Way of Allah and for the

– wayfarer 12

Waqf and Zakat institution in socio- economic development:

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Socio-economic

significant of waqf

and Zakat institutions

Enhancing economic

progress

Eliminating poverty

Reducing

government

expenditure

Equitable

distribution of

wealth

Preventing deficit

finance

*Enhancing capabilities.

*Employment.

*Financing lower incomes groups.

Curiosity

2. Is there

really a

substantial

contribution

for zakat and

waqf in

sustainability?

1. Is it wise to

regulate Waqf

and Zakat?

Competing Hypothesis

• Despite the integrated role for Waqf and Zakat, it has been argued that the current institutional framework for Waqf and Zakat could not be used to determine the impact of these funds in achieving sustainable development schemes. According to Nasim (2014), Waqf and Zakat institution have not been taken seriously by most Muslim countries. Only a few Muslim countries such as Sudan, Yemen, Saudi Arabia, Libya, , Pakistan, and Malaysia have compulsory Zakat management through governmental bodies, while other countries such as Egypt, Jordan, Iran, Bangladesh, Bahrain and Iraq have formed specialized state institutions where participation of the Waqf and Zakat institutions is voluntary. Many countries have the safety net programs for the very poor and vulnerable but no country has made the institution of Waqf and Zakat as a part of their poverty reduction strategy. Therefore, in order to activate the role of Waqf and Zakat institutions, the optimal use of their funds should be ensured for the continuation self-generated income and stable inflow of external funds that can support the needs of the community activities and enhancing sustainable development. In addition, there is a strong need for proper planning, management and integration of these institutions for the purpose of poverty reduction and economic growth across Muslims country. 15

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